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Digital Life

 

In China, Apple’s focus pays off while Samsung feels squeeze

Published on Jul 24, 2014 8:57 PM
 
A man uses an iPhone 5 to take a picture of a Samsung Galaxy Note smartphone in this photo illustration taken in Beijing on June 5, 2013. The mobile industry has long held that Samsung’s broad range of mobile devices makes it nimble in changing markets, while Apple loses out by rigidly sticking to its high-end gadgets. -- PHOTO: REUTERS

BEIJING (REUTERS) - The mobile industry has long held that Samsung’s broad range of mobile devices makes it nimble in changing markets, while Apple loses out by rigidly sticking to its high-end gadgets.

But manufacturers’ recent earnings reports challenge those assumptions, at least in China, the world’s biggest mobile market – where the roll-out of the next-generation 4G wireless network has been touted as a booster for smartphone makers seeking growth as demand in advanced countries falters.

Apple Inc’s latest quarterly results showed sales of its high-end phones in China grew at nearly twice the pace analysts had expected. Meanwhile, budget offerings from Chinese firms won at the cheaper end, effectively squeezing industry leader Samsung Electronics Co Ltd.

Even as Apple posted strong China sales, the South Korean tech giant warned this month that quarterly earnings could drop 25 per cent due to an inventory build-up of cheaper phones and weaker demand for 3G products in China.

 
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